Canada's main stock index fell almost 400 points, or nearly two per cent, Tuesday on broad-based weakness, while U.S. markets also fell, with the three major indexes south of the border each losing more than one per cent.

The S&P/TSX Composite Index closed down 390.75 points, or 1.93 per cent, at 19,899.79.

In New York, the Dow Jones Industrial Average was down 361.24 points at 34,946.39. The S&P 500 Index was down 51.86 points at 4,437.86, while the Nasdaq Composite was down 157.28 points at 13,631.05.

The Canadian dollar traded for 74.17 cents U.S. compared with 74.29 cents U.S. on Monday.

The September crude contract was down US$1.52 at US$80.99 per barrel and the September natural gas contract was down 14 cents at US$2.66 per mm/BTU.

The December gold contract was down US$8.80 at US$1,935.20 an ounce and the September copper contract was down six cents at US$3.67 a pound.